UK banks agree £11 billion lending packages to support SMEs to expand overseas

Five major UK banks have finalised an agreement with UK Export Finance (UKEF) to support SMEs to invest and expand abroad through an £11 billion lending commitment.

The lending commitment, from the UK’s five leading banks, is one of the largest collective moves by the banking sector in over a decade.

Senior executives from NatWest, HSBC UK, Barclays, Lloyds and Santander agreed the deal at a roundtable convened by Business Secretary, Peter Kyle, and the CEO of UKEF Tim Reid. Together, the banks serve half of all British businesses across all corners of the country.

The lending will be drawn entirely from the banks’ own balance sheets and will give small and mid-sized enterprises a powerful route to access the finance and expert advice they need to compete on the world stage. 

UKEF, the government’s export credit agency, will guarantee up to 80% of eligible loans issued by each bank. Banks can apply UKEF’s guarantee automatically for working capital loans of up to £10 million. 

Alongside funding, businesses will also?benefit?from advisory support through banks’ relationship managers and UKEF’s regional Export Finance Managers, helping UK SMEs navigate global markets and seize new opportunities.

UKEF Chief Executive Tim Reid said:

“British exporters are at the heart of economic growth. This partnership unlocks billions of pounds to help UK businesses compete to win overseas contracts, showing how UKEF stands behind companies with global ambitions.”